Summary

The latest news out of China is mixed. On one hand, the Chinese economy grew by 6.5% over the fourth quarter, making it the only major economy to post annual growth in 2020. On the other, a worsening COVID-19 outbreak in the northeast threatens a repeat of the wide dispersion of the virus witnessed during the 2020 Lunar New Year.

The state authorities have now recorded six consecutive days of triple-digit increases, with cases concentrated in Hebei and Heilongjiang. Yet actions being taken by the governments of affected provinces suggest the possibility of a more serious outbreak than what the official numbers reflect.